Ipod touch 2g not booting up or restoring. Please Help

Hey guys, this morning i opened up cydia on my 2g jailbroken ipod touch and I guess it crashed and rebooted my ipod. When it was rebooting, the itunes logo and usb cord picture showed up. I tried to connect it to itunes and and restore it but it would not work. I did not get any errors but the restore process kept getting stuck at the waiting for ipod sign. The progress bar on the ipod was all the way across but it did not restore. I tried to fix this all day and can not get it to work. The ipod is jailbroken and is also under apple warranty so if there is any way to delete the jailbreak so i can bring it back to apple, that would be awesome. If you guys can tell me how to fix it, that would be even better. Thank You.

By the way, the firmware is 2.2.1. If it matters, i updated to 3.0 beta 5 and did not like it so i went back to 2.2.1 and it worked fine until i opened up cydia.